There are two ways to set up a Xero integration, by Single Invoice or Multi Invoice.
What is "Multi Invoice Billing"
This is where you add your products to a booking. Each time you receive a payment, you add an invoice that directly matches each payment, and each invoice has its own Tax Rate and Account Code.
This system is best for Most Xero Users with 70% of BriteApp Xero Integrations using the Multi Invoice format.
NOTE - This is the more simple of the two solutions to use. If you have multiple tax rates for different product types, you may need to use a Single Invoice format. raise one single invoice for the booking which is generally raised after the last payment is received.
What is "Single Invoice Billing"
This is where you raise one single invoice for the booking which is generally raised after the last payment is received.
In single Single Invoicing, you want the detail of the products you are billing your customer for to appear by line item in Xero. This allows you to use your accounting codes, tracking and multiple tax rates by line item in Xero.
With Single Invoice, you do the following process.
Add products and services.
Add payment schedule. As you receive payments, they are recorded as Prepayments in Xero on the balance sheet. You can set a tax rate and account code on these payment.
After the final payment has been received, you "Create Invoice" - which raises the invoice in Xero and matches all the associated Payments against the invoice (the prepayments are removed from the Balance Sheet).
TIPS
If you currently break down your invoice by line item in Xero, the Single Invoice System may be the best fit for you.
This system is best for Pro Xero Users who want to break down Revenue by department, break Revenue streams into different chart of accounts. Roughly 30% of BriteApp Xero Integration users use the Single Invoice format.
NOTE - We have come up with a Brite Solution!! There is a restriction in Xero where you cannot edit an invoice once a payment is applied to it. Our Single Invoice format using Prepayments avoids this problem happening (because the final invoice is only raised after all payments have been settled).
HOW DO I SET MY ACCOUNT TO MULTI INVOICING
All accounts default to Single Invoice Billing. Please contact support if you would like your account changed to Multi Invoice Billing
NOTE - Once you start using either Single or Multi Billing, you cannot switch back, so please take all the professional advice you need from your financial advisor (and the Brite Support Team) to make sure you are set up for SUCCESS !!